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Herz — Business Desk · · 30s summary · 3 min read
Germany's Ministry of Economy made public on July 17, 2026, a draft revision of the EEG—the Renewable Energy Act—and the Netzpaket (Network Package). Small solar installations of less than 25 kW connected from 2027 onward would receive guaranteed compensation for only 36 months before being forced to sell directly on energy markets. The solar sector fears a collapse in investments and a threat to tens of thousands of jobs. The reform maintains the legal target of 80% renewable energy by 2030.
Germany's Ministry of Economy, led by Katherina Reiche (CDU), made public on the evening of July 17, 2026, its draft revisions of the EEG—the Renewable Energy Act—and the Netzpaket (Network Package), according to Handelsblatt.
The draft provides that small solar installations with a capacity of up to 25 kW connected from 2027 onward will only benefit from guaranteed compensation for a maximum of 36 months. After that period, their operators must sell their electricity directly on energy exchanges themselves.
The draft also reduces compensation payments for new solar and wind installations in grid congestion zones. When these installations must be temporarily shut down to prevent overload, they would receive reduced compensation.
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The Bundesverband Solarwirtschaft (BSW), Germany's solar industry federation, is reacting strongly. Its chief executive Carsten Körnig warns that these plans could trigger a collapse in investments worth several billion euros and threaten tens of thousands of jobs in small and medium enterprises and skilled trades.
The federation fears that large parts of Germany could become 'no-go zones' for renewable energy because of the reduced compensation provisions in grid congestion areas.
The BEE, represented by Ursula Heinen-Esser, denounces a new source of uncertainty for sector investors.
The Deutsche Umwelthilfe, an environmental advocacy organisation, argues through Sascha Müller-Kraenner that the government is passing the consequences of insufficient grid capacity onto renewable energy operators without imposing binding obligations on grid operators.
The BNE, represented by Robert Busch, criticises the fact that the slowest grid operator continues to dictate the pace of the energy transition.
Janine Wissler, vice-chairwoman of the Die Linke parliamentary group, argues that the EEG modifications would make renewables unprofitable. Michael Kellner (Greens) reproaches the Netzpaket for giving grid operators six years to resolve congestion and for imposing massive restrictions on rooftop solar electricity.
The parliamentary timeline and the likelihood of reform adoption are not specified in available information. The BEE and BNE are organisations that commented on the reform; their full legal names could not be independently verified for this article.
The EEG is Germany's federal law governing renewable energy. It sets out conditions for compensating producers of solar, wind, and biomass electricity. The current reform aims to reduce public support costs while maintaining the target of 80% renewables by 2030.
The draft aims to encourage small solar producers (up to 25 kW) to sell electricity directly on markets after a 36-month transition period. Minister Reiche hopes to reduce public green energy support costs through the EEG reform.
A grid congestion zone is an area where electrical grid capacity is saturated. Solar and wind installations can be temporarily shut down to prevent overload. The draft reduces financial compensation paid to affected operators.
Drafted in January 2026, the initial proposal faced opposition from SPD ministers Lars Klingbeil (Finance) and Carsten Schneider (Environment), who worried it would slow the energy transition.
In 2025, wind, solar, and biomass together represented 58% of German electricity generation. The legal target is to reach 80% by 2030.